AT&T to iPhone users: Slow down or pay up


AT&T is proposing ways to get its customers to use less wireless data because its 3G network is overloaded. This comes after AT&T Mobility CEO Ralph de la Vega spent a while at the UBS Global Media and Communications Conference defending its 3G network capability and speed.

The crux of the problem are the pesky San Francisco and New York City markets, which are straining capabilities. De la Vega said AT&T may consider charging by usage, but not before trying to educate its heaviest users -- mostly those with smartphones (but come on, we really know they mean iPhones since they are the sole provider for them.) Apparently 40% of all data usage comes from a mere 3% of iPhone users.